On 6 April 2019 the minimum contribution levels for auto enrolment workplace pension schemes are due to increase.
From that date all employers will be required to increase their contribution towards their employee's auto enrolment pension scheme. The employer's minimum contribution will increase from 2% to 3% and the employee's contribution will increase from 3% to 5%, meaning that the overall total minimum contribution will be 8%.
If an employer decides to pay the total minimum contribution required, their employees staff won't need to pay anything.
The 8% minimum contribution calculation is based on a specific range of earnings. For the 2018/19 tax year this is between £6,032 and £46,350 a year. These figures are reviewed each year by the government and will be again on 6 April 2019.
If you would like some assistance in setting up a workplace pension scheme for auto enrolment or help with managing your payroll, please contact our head of payroll services director Martin Southern on 023 9248 4356 or email him at mjs@morriscrocker.co.uk
04/12/2018
View all >
20/10/2025
Chancellor should use budget to reform tax
Chancellor Rachel Reeves should use the Autumn Budget to reform the UK’s tax system, says the Institute for Fiscal Studies (IFS).
READ MORE
New tax avoidance law risks missing target
New legislation aimed at tackling rogue tax agents and those pushing tax avoidance schemes won’t catch all of those it is aimed at, warns the Chartered Institute of Taxation (CIOT).
HMRC brings in extra £4.6 billion
HMRC brought in an extra £4.6 billion in tax revenue last year by using its ‘big data’ system.
Sign up to keep in touch to receive our latest news and industry updates.
* *
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.